Maggi likely to return in December if court-designated labs clear fresh samples

Just one more month for return of 2-minute noodles Maggi's return — in a new pack with fresh declarations, but with same old taste.NEW DELHI: Maggi noodles will be back with cosmetic changes on its packs and fresh declarations on the labels but with the same taste, two industry officials aware of the developments said. The Indian arm of the Swiss foods giant Nestle sent fresh samples of the product for testing this weekend after resuming production of Maggi last week. Once the fresh samples are cleared by the labs, Nestle will bring Maggi back to shop shelves, which is likely in December.

"In compliance with the orders of the High Court of Bombay, fresh samples from these newly-manufactured batches have been sent for testing to the three accredited laboratories designated by the high court. We shall commence sale only after the samples are cleared by these laboratories," a Nestle India spokesperson told ET.

The spokesperson did not comment on the changes on the packs. One of the two industry officials said the changes will be primarily about ingredients and safety in the manufacturing of the noodles. Nestle has resumed production of Maggi noodles in Nanjangud in Karnataka, Moga in Punjab and Bicholim in Goa. The company has sought state government permission to start production at two other plants.

Earnings at Nestle India were affected after Maggi noodle was banned in the country in June. Consolidated net profit for July-September — the first full quarter without Maggi noodles sales — tanked 60% to Rs 124 crore from a year earlier. Maggi used to be Nestle’s biggest brand, accounting for about 30% of sales at the company, which also makes KitKat chocolates and Nescafe coffee. Net sales fell 32% to Rs 1,736 crore in the quarter.

"Nestle India’s third-quarter sales were below our estimates due to higher-than-expected rub-off impact of the Maggi ban on other brands," Abneesh Roy, associate director at Edelweiss Financial Securities, wrote in a report on October 30.

While Nestle India remains positive from a three-year perspective, its medium-term quarterly numbers will be volatile, according to Edelweiss.

The foods company has stepped up advertising on television and digital media to pave the way for Maggi’s return. "We appreciate the company’s effort to up the ante on advertising and promotions, but this will depress margins in the coming quarters. We believe Nestle is unlikely to garner the earlier 70% share of the noodle pie," the Edelweiss note added.

The Food Safety and Standards Authority of India, the food regulator, banned Maggi in June after tests showed the instant snack contained excessive lead and traces of monosodium glutamate, a flavour enhancer.

For the quarter ended June 30, the company reported a loss of Rs 64.4 crore, its first in three decades. The Bombay High Court revoked the ban on Maggi on October 19. Nestle said that all 90 samples, covering six variants, tested by laboratories had lead well below the permissible limits.

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